SIAM and ACMA laud new foreign trade policy as growth accelerator

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal today launched the Foreign Trade Policy 2023 saying that it is dynamic and has been kept open-ended to accommodate the emerging needs of the time.

He stated that the policy had been under discussion for a long time and has been formulated after multiple stakeholder consultations. India's overall exports, including services and merchandise exports, have already crossed US$ 750 billion and are expected to cross $ 760 billion this year, he said.

He stressed that every opportunity for export must be captured and utilised effectively. He also mentioned that in the next five months during India’s G20 presidency there should be a massive concentrated outreach with the world both sector-wise and country-wise.

The key approach to the policy is based on four pillars:

- Incentive to Remission, 
- Export promotion through collaboration: Exporters, States, Districts, Indian Missions,
- Ease of doing business, reduction in transaction cost and e-initiatives and,
-  Emerging Areas: E-Commerce, Developing Districts as Export Hubs and streamlining SCOMET policy.

Welcoming the new Foreign Trade Policy 2023, Vinod Aggarwal, President, SIAM & MD & CEO, VECV said, “The auto industry would get substantially benefitted from the new Foreign Trade Policy 2023 with measures such as self-certification of origin, reduction of threshold for status holders of exporters, enabling rupee payment and reduced export obligation under EPCG Scheme for Electric Vehicles. These measures will go a long way in propelling automobile exports from India, as Indian vehicle manufacturers are increasingly focusing on widening their exports footprint.”

ACMA, the apex body representing India’s auto component sector, congratulated the government on the announcement of positive measures to promote exports in the Foreign Trade Policy 2023.

Sunjay J Kapur, President ACMA, said, “The Foreign Trade Policy 2023 is another step towards a digitally enabled, Aatmanirbhar Bharat, coupled with measures that will drive India to become a significant player in global trade. Focus on continuity of remission of taxes, ease of doing business, technology-led enhanced trade facilitation, promotion of exports through e-commerce and wider engagement with states and districts to foster exports are indeed steps that will help us achieve the target of USD 1 trillion in exports by 2030.”

Kapur further mentioned, “Significant reduction in the application fee for Advance Authorization and EPCG Scheme for MSMEs is another welcome step as a majority of the exporters in the automotive supply chain are smaller enterprises. That apart, the addition of BEVs and Green Hydrogen to the list of ‘Green products’ will allow them to avail of reduced export obligation under EPCG Scheme, adding to the sustainability initiatives of the Government.”

The India auto components sector recorded a turnover of US$ 56.5 billion in FY2022 with exports of $19 billion. Exports grew 43 percent over FY2021 recording a trade surplus of US$ 700 million. In the first nine months of FY2023, despite several geo-political challenges and recessionary headwinds in key markets, auto components exports have been well on track, clocking US$ 15.1 billion.